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Helping kids get their credit started.

Valued Contributor

Helping kids get their credit started.

6 months ago I added DS (23) and DD (18) to my QS as AUs so that they could start building credit.  At that time we pulled all 3 CR from annualcredittreport.com and both had a collections on thier report.   Disputes got the collections report removed. 

 

Yesterday we pulled CCT on both and their scores are higher than mine.   Since DS has been recieving Prequals from Cap one he apped their and got a Platinum MC with a SL of $1000.  Not a great card but it gets him started with credit of his own.    DD had been getting prequals from Discover so over there we went and she got a Discover it Chrome for Students with a SL of $1250.  Hers is better because she gets the higher SL and rewards.  

 

With using my QS they have taken different approaches to how they use it.  DS has been chargeing $100-$300 a month and making two payments a month, DD has put two reccuing subscriptions on it and maybe a tank of gas each month then she makes 1 payment for her small amount owed.

 

Both ways of handleing it work and they seem to be doing it right.

 


FICO 8 Starting Score

Current Scores





Message 1 of 7
6 REPLIES
Valued Contributor

Re: Helping kids get their credit started.

Sounds like they are both off to a great start!













Credit isn’t just a score, it’s a skill.
Message 2 of 7
Valued Contributor

Re: Helping kids get their credit started.

They are both off to a great start! Way to go

Starting Scores FICO 8 (Feb '18):
EX- 519, TU- 530, EQ- 545

Current Scores



Message 3 of 7
Regular Contributor

Re: Helping kids get their credit started.

That’s great. Congrats. On their way and showing their responsible.
Times have changed. I remember booths setup at college with banks giving money like candy. The journey is much harder to begin.
Your chosen approach can dictate what will be your final outcome. Be proactive, not reactive-
Message 4 of 7
Valued Contributor

Re: Helping kids get their credit started.


@blindambition wrote:
That’s great. Congrats. On their way and showing their responsible.
Times have changed. I remember booths setup at college with banks giving money like candy. The journey is much harder to begin.

I remember those days as well. That is where my credit troubles began. I was uneducated as to the importance of credit scores and was pretty loose with paying back CCC. I am glad the FTC has limited how CCCs can market to college students and those under 21. 

 

Perhaps there should be a Credit Education Safety Course before you can get a CC akin to the Hunter Safety Course required before you can get a hunting license.













Credit isn’t just a score, it’s a skill.
Message 5 of 7
Valued Contributor

Re: Helping kids get their credit started.


@blindambition wrote:
That’s great. Congrats. On their way and showing their responsible.
Times have changed. I remember booths setup at college with banks giving money like candy. The journey is much harder to begin.

I wish I still had the card I got at that booth.  It would be 35 years old now, but alas it went away in my BK in 2005.


FICO 8 Starting Score

Current Scores





Message 6 of 7
New Member

Re: Helping kids get their credit started.

That is awesome and it sounds like your kids are off to a great credit start. I have added my 17 y.o and 13 y.o to my AMEX platinum card and have set a monthly spend limit. My 13 y.o. does not use her card, but the 17 y.o. is learning to manage her $200 and use her paycheck to pay it off. I like that I can track her spending and talk to her about paying it off. Since its AMEX I am getting her in the habit of paying off each month and not carrying a balance. When she turns 18 next year we will pull her CR and see where she stands then have her apply for her own card.

Message 7 of 7